Homes Selling Fast As Prices Hit Record Highs, Says Realtor.com

The 2016 homebuying season is in full swing, with homes in May moving as fast as we’ve seen since the housing recovery began – even as asking prices continue to hit new record highs.

Based on preliminary May data released realtor.com, the median age of properties on realtor.com in May was 65 days, which was the same median age as a year ago and three days faster than last month. The median home was listed at $250,000 – 9 percent higher than one year ago and 2 percent higher than April. For-sale housing inventory also continues to increase on a monthly basis, but is still lower than one year ago. More than 550,000 new listings have been added to the market so far this month.

“Based on our early read of demand and supply data in May, this spring’s real estate market is coming in strong, just as we expected,” says Jonathan Smoke, chief economist of realtor.com. “Pent-up demand and low mortgage rates are driving consumers into the market with urgency. However, the recurring issue of limited supply is leading to record-high prices.

“Thankfully, we are finally seeing gains in new single-family construction and new home sales to provide a pressure release. Potential buyers are finding they can avoid a competitive bid situation if they elect to sign a contract on a home to be built. As the share of new homes sold goes up, we should eventually see signs of more balance in the existing home market, like lower price appreciation. However, we clearly aren’t there yet.”

Key Statistics:

Median age of inventory is estimated to end at 65 days, the same as May 2015 and down 4 percent from April.

Median listing price for May should reach a record high of $250,000, a 9 percent increase year over year and a 2 percent increase month over month.

Listing inventory in May is showing a 4 percent increase over April. However, inventory decreased 4 percent year over year.

com’s Hottest Markets receive two to three times the number of views per listing compared to the national average. In terms of supply, these markets are seeing inventory move 19-25 days more quickly than the rest of the U.S. They have also seen days on market drop by an average of three days from April.

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